Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Raman started a gym named as 'Strong Body'. He installed large number of machines and equipments of different types and appointed qualified trainers to help the customers in the use of machines. Initially, he kept a low fee per hour so that boys and girls belonging to the poor families may also avail the facilities of the gym. Very soon his gym became popular and he started operating in three shifts. For this, he appointed additional trainers. He also installed extra machines so that more customers could be enrolled. In one year he started earning good profit. He took a nearby building on rent and started a 'Recreation and Health Club' for the senior citizens of the locality on very nominal charges. He also encouraged young boys and girls to participate in the cleanliness drive started by Prime Minister. They agreed and started giving one hour daily for cleanliness of the nearby areas before opening of the 'strong body' gym and 'recreation club'.

1. Identify and explain the type of business expansion that took place under the entrepreneurship of Raman.
2. Identify any two values that Raman tried to propagate.

After doing her M.Com. from 'Himachal Pradesh University of Shimla', Komal went back to her village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of women of her village, so she formed an organisation, the membership of which was open for all the women villagers on voluntary basis by paying Rs.500 only which will be treated as their capital. Komal knew that the land of her village was suitable for the farming of medicinal plants. So she motivated the members of her organisations for growing medicinal plants in their fields under the guidance and help of the local agricultural department. It was also decided that the organisation will purchase the produce of each member and sell the same to drug manufacturing companies, at a very good price which was not possible for the members individually. The main objective of the organisation is to render services to its members rather than to earn profit.
A computer training centre for young boys and girls of the village was started under the guidance of Komal from the surplus of the profits.

1. Name the process that helped Komal in developing an idea into an opportunity.
2. Identify the kind of organisation that was formed by Komal.
3. State any two values which Komal wanted to communicate to the society.

Define organisational plan. A business can be classified in how many categories?

What is an operational plan? Discuss its blue print.

Answers to these questions should not exceed 75 words:
Explain Inventory Control and state its objectives.

State any two advantages and any two limitations of owner’s funds.

Answers to these questions should not exceed 30 words:
What is financial management? What is the main objective of financial management?

Distinguish between ICICI and SIDBI.

Business is a continuous human economic activity with an objective to earn profit by producing, buying and selling goods and services. With the help of the statement, explain any four characteristics of business.
Earning profits by efficient use of resources, minimising wastage and not by exploiting consumers, conveys what types of values shown by the entrepreneur.

Arjun owns a factory which manufactures glass products. Some of his products are also patented. During the last 3 years of operating business, he has failed to provide for depreciation and amortisation. Now, some of the assets need replacement and he is facing shortage of funds. Advise him, as to why he should charge depreciation and amortisation? Which values are violated by him by not providing for the above?